Before I begin I must confess I am not a big trader. Matter of fact, I enjoy practicing trading currencies within a demo account at https://fxtrade.oanda.com. From my understanding of how the demo account works, you place your trades based on real-time data. But my trade doesn't effect the real data. Another words, demo accounts can't cause change real time data.
The last couple of days I noticed some very large spikes taking place. I took a forex trading course some years back as well read through a technical analysis book. During my learning phases I don't recall any mention about very large spikes and how to respond to them.
These spikes would shoot some 200+ pips then drop back down within seconds. A few seconds later, it would happen again. My first thought, someone is trying to force an order to open or possibly create some physiological chaos enough to force a mass of traders to buy or sell. I noticed this yesterday and today, on AUD/USD and GBP/USD.
I am not sure what to make of these spikes, but it seems their should be some way to prevent this kind of madness, given the current economy problems hints to better (not more) regulation so confidence levels don't sway to the extremes.
Another thought, could it be possible that some groups of traders are purposely trying to cause chaos and lack of confidence in major currencies? Am I overreaching by calling this "economic terrorism". The global economy crisis has reminded me often of what Osama Bin Laden said back in 2004, that he wants to bankrupt the US.
This post was about forex trading spikes... Sorry, I am stepping a bit further away from my original intentions. Over the weekend, Huckabee's show did mention, with no sources, there was speculation that the mass selling that took place last week could be terrorist trying to make things worse. Huckabee mentions this in an interview on fox news. This is an interesting thought, considering the connections between terrorists, Osama Bin Laden and the current global crisis.
Back to forex, are these spikes normal? If you are an active trader, could you fill me in on these spikes. Thanks!
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